National Herald case: ED moves to seize assets worth Rs 661 crore

Congress leaders Sonia Gandhi and Rahul Gandhi are majority shareholders of Young Indian, which is under the ED scanner over charges of acquiring AJL and its assets for a “a mere Rs 50 lakh” against an alleged loan extended by the Congress. Both Sonia and Rahul were questioned in 2022 as part of the probe.

“This is the continuation of the… proceedings where money laundering is alleged with no money movement, no transfers and the mere transfer of shares being wrongly treated as money laundering. This is a consequential order based on the earlier orders and continues to reflect the attempt to over-sensationalise by the government and to harass its political opponents. Proper remedies and proper remedial action in the courts will be taken,” Congress MP Abhishek Manu Singhvi said on Saturday.

In its statement, the ED said these properties were attached after “extensive investigation… which revealed significant generation, possession and use of proceeds of crime to the tune of Rs 988 crore”.

“To secure the proceeds of crime and to prevent the accused from dissipating the same, the immovable properties of AJL located at Delhi, Mumbai and Lucknow valued at Rs 661 crore, alongwith the shares of AJL valued at Rs 90.2 crore, were attached by issuing provisional attachment order dated November 20 last year by the ED and the same has been confirmed by the adjudicating authority on April 10 last year,” it said.

“As part of the process to take possession of the tainted properties in the AJL money laundering case, the ED, in compliance with Section 8 of PMLA, 2002 and Rule 5 (1) of the Prevention of Money Laundering, on April 11, has served notices to registrars of property in Delhi, Mumbai and Lucknow having jurisdiction of the area where AJL properties are located,” it said.

Notices have also been affixed at “conspicuous part of these properties” at “5(A), Bahadur Shah Zafar Marg, New Delhi”; “Herald House, Plot No. 2, Survey No. 341 Bandra (E), Mumbai”; and “No.1 Bisheshwar Nath Road, Lucknow,” it said. The notices primarily seek vacation of the premises.

“A notice… has also been served to Jindal South West Projects Limited which occupies the 7th, 8th, and 9th floors at Herald House, Bandra (E), Mumbai, to transfer the rent/lease amount every month in favour of the director, Directorate of Enforcement,” it said.

The ED said its investigation began in 2021, after a Delhi court took cognizance of a private complaint filed by Subramanian Swamy. “The complaint highlighted a criminal conspiracy by several prominent political figures, including Sonia Gandhi, Rahul Gandhi, late Motilal Vohra, late Oscar Fernandes, Suman Dubey, Sam Pitroda and a private company Young Indian for alleged involvement in a money laundering scheme related to the fraudulent takeover of properties valued at over Rs 2,000 crore belonging to AJL,” it said.

“The legal proceedings against the accused have faced challenges but have been upheld by both the Delhi High Court and the Supreme Court of India, allowing the investigation to proceed,” it said.

“The ED has conducted searches and seizures at multiple locations, uncovering incriminating documents linked to the alleged money laundering activities. Investigation under PMLA has conclusively revealed that Young Indian, a private company beneficially owned by Sonia Gandhi and Rahul Gandhi, acquired AJL properties worth Rs 2,000 crore for a mere Rs 50 lakh, significantly undervaluing its worth,” the ED said.

The ED said its findings indicated that Young Indian and AJL properties were used for “generation of further proceeds of crime in the form of bogus donations to the tune of Rs 18 crore, bogus advance rent to the tune of Rs 38 crore and bogus advertisements of Rs 29 crore”.

“To stop the further generation, utilisation and enjoyment of the proceeds of crime and in compliance with Section 8 of PMLA 2002 and Prevention of Money Laundering (Taking Possession of Attached or Frozen Properties Confirmed by the Adjudicating Authority) Rules, 2013, the ED has initiated the proceedings to take possession of the tainted properties,” it said.